Fri, November 29, 2024
Thu, November 28, 2024

Demand for active ETFs is growing among Canadian investors

The article from MoneySense discusses the growing popularity of actively managed ETFs among Canadian investors. It highlights that while passive ETFs, which track an index, have been the norm, there is a noticeable shift towards active ETFs where fund managers make decisions to outperform the market. This trend is driven by several factors including the potential for higher returns, lower costs compared to mutual funds, and increased transparency. The article notes that active ETFs offer the advantage of professional management, which can adapt to market changes more dynamically than passive strategies. Additionally, it mentions that firms like BMO Global Asset Management and Horizons ETFs are expanding their offerings in this space, with products like the BMO MSCI USA Quality Index ETF and Horizons' various active ETFs gaining traction. The piece also touches on the regulatory environment in Canada being conducive to the growth of active ETFs, with the Canadian Securities Administrators (CSA) providing a framework that supports these financial instruments.

Read the Full MoneySense Article at [ https://www.moneysense.ca/save/investing/etfs/demand-for-active-etfs-is-growing-among-canadian-investors/ ]